PancakeSwap’s native token CAKE struggles under bearish momentum following its unsuccessful attempt to breach the $2.95 resistance level. Increased selling pressure and shifting market structure prompted the rejection, with technical indicators pointing to continued downside risks.
The daily chart confirms a bearish trend as prices breached the critical $2.535 swing low alongside negative signals from key indicators. The Accumulation/Distribution line shows significant capital outflows while the MACD histogram reflects intensifying selling activity. This breakdown signals weakening buyer confidence amid the broader market correction.
Critical support emerges near $2.55, where recent price action suggests potential for a technical rebound toward the $2.7 resistance zone. Should this level hold, traders anticipate intermediary resistance tests at $2.8 and the decisive $2.95-$3.05 range. However, Bitcoin’s current stabilization around $112,000 could significantly influence CAKE’s trajectory given its historical correlation with major market movements.
Liquidation heatmap analysis identifies crucial clusters at $2.50 and $2.70, potentially triggering volatile price reactions near these thresholds. Despite the prospect of a near-term bounce, prevailing technical weakness underscores the importance of cautious positioning among traders as bearish sentiment dominates the current landscape.